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The Marigold Company manufactures 4,500 units of a part that could be purchased from an outside supplier for $16 each. Marigold's costs to manufacture
The Marigold Company manufactures 4,500 units of a part that could be purchased from an outside supplier for $16 each. Marigold's costs to manufacture each part are as follows: Direct materials Direct labor $4 3 Variable manufacturing overhead 6 Fixed manufacturing overhead 10 Total $23 All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses. (a-b) (a) Calculate relevant cost to make. Relevent cost to make $ (b) Should Marigold continue to manufacture the part? Yes No per unit
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